Throughout the course of your life, you’re going to find yourself in situations that call for you to negotiate the price of something. People negotiate on the price of everything from houses to cars.
There are even some things that you may not have realized you can negotiate that you’re free to haggle on. Some people have figured out how to negotiate cell phone contracts, gym membership costs, and even medical bills.
Here are five tips that will help you successfully negotiate the price of a product or service.
1. Do Your Research
Prior to purchasing anything, you should always do your homework to find out how much things should cost. Use the internet to check the price of houses in a specific area, cars in a certain city or town, and more.
You’ll avoid overpaying for something and give yourself a leg to stand out at the negotiating table when you research prices for things ahead of time.
2. Walk In With a Number in Mind
When you start negotiating with a salesperson, they’re going to use all kinds of sales development strategies. Their goal is, after all, to convince you to buy something from them.
One thing they’ll often do when you express an interest in negotiating is to ask, “What number do you have in mind?” It’s their way of opening up the negotiations while trying to gauge your interest in making a purchase.
It’s best to walk into this kind of situation with a number in mind. Try not to make the number that you give them embarrassingly low. But don’t make your best offer at first, either.
3. Be Friendly But Firm
There are some people who try to steamroll salespeople during negotiations when they’re first figuring out how to negotiate. They’ll scoff at their offers and attempt to strongarm them into making a deal.
If you’re dealing with an inexperienced salesperson, this approach might work. But if you become combative with someone who is more experienced, your interaction with them could become contentious in a hurry.
You’re better off being friendly but firm at the same time. Understand that the salesperson is just trying to do their job and what’s in their best interest while trying to keep you happy.
4. Offer to Pay in Cash
If you’re going to pay for something with a credit card, the company that’s selling it to you is going to get hit with a processing fee. That fee might make it hard for them to find wiggle room in the price of something.
If you afford to do it, tell a salesperson you’re interested in paying for whatever you’re buying in cash. They’ll be a lot more receptive to lower prices.
5. Prepare to Walk Away If Necessary
There will be times when you and a salesperson just can’t agree on the price of something. Don’t be afraid to walk away from the negotiating table.
If there is any way a salesperson can get you a better deal, they’ll follow up with you in a day or two to see if you’re still interested. Otherwise, it’s best to go out and negotiate with someone else to see if a lower price might be possible.
Learn How to Negotiate to Save Money
Not everyone is going to be a master negotiator from the beginning. It takes time to learn how to negotiate.
But once you’re able to do it, you can save hundreds, if not thousands, of dollars on some items. You’ll wonder why you didn’t start saving money sooner through the power of negotiation.
Check out our blog for more money-saving tips and tricks.